Apple has everything going for them. The company has received the praise of the wariest of technology investors such as Warren Buffett. Since the past year the company is up over 50% from $110 to over $170 with little volatility or dips. Apple will also benefit greatly from the current administration’s tax plan if it passes. The lower rate would, in theory, entice the company to bring the billions they have abroad in foreign municipalities. That cash could be used to start new product lines such or fund existing projects such as an Apple TV or Apple car technologies. Apple’s R&D is mostly geared at improvement to their current product line, but with so much revenue coming from one product strategists propose they enter new markets and diversify. Banks have an average target of $187 for the company with some analysts believing the share price could reach $235.
Apple recently released their iPhone X as well as the iPhone 8. There were worries that the new screen would push customers away as well as a hefty price tag that could scare off buyers especially with the release of the Pixel 2 which has a higher DX score boasting a superior camera at a lower price. Nonetheless sales of the iPhone X have been very strong signaling new price patterns for smartphones and premium models. The company may be looking for other big changes especially following new design employees, a revamped MacBook Pro, new screens powered by OLED, and a new announcement following the Mac Mini. Apple has not updated their Mac Mini in years since 2011 and will no longer be servicing them. Marketing chief Phil Schiller mentioned that it is an “important product,” but no specific plans that they will be introducing a newer edition. Additionally, Apple may be venturing into vertical integration and developing its own PMIC or power-management integrated chips. Dialog Semiconductor’s CEO Bagherli said, “Apple has the resources and capability to internally design a PMIC and could potentially do so in the next few years.” Dialog’s CEO mentioned that there were no risks to their existing contracts for 2018 and were in advanced talks for 2019. Apple has become a strong leader in other areas as well with Tim Cook, Apple’s CEO, visiting China for a conference as well as Nadella of Microsoft. The topics of interest were openness and collaboration of data. Cook was pressured to remove VPN apps from the App Store in China earlier due to citizens bypassing the nation’s blocked websites through use of VPNs. Apple’s other products other than the iPhone may be doing well especially with an Apple Watch 4 that is expected to be even faster. More importantly, Air Pods may be dominating the wireless earbud market. Sony’s new product was criticized and within the price range Air Pods are the most popular and best reviewed. Although other companies develop good products in the market space such as Bose, they are pricier. With more companies launching their Bluetooth headphones, the Air Pods seem distinguished in their quality with almost no complaints.
Apple’s next earnings are later this month with three revisions edging predictions higher and three lower. Additionally, Apple has officially confirmed they are buying music recognition app Shazam showing efforts to boost their Apple Music line and dominating the music industry digital services. Tim Cook and Apple enthusiasts are confident about the company, while other researchers still bring up their massive cash remaining idle as well as revenue mainly coming from one source – the iPhone.